For what purpose may a Craters & Freighters franchisee solicit business in their Territory?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
You may only solicit business in the Territory for the purpose of obtaining customers who reside or operate within the Territory, and you cannot knowingly solicit business outside of the Territory. However, you are not required to verify that your customers reside or conduct business within the Territory. Accordingly, it is possible that you may provide services to customers who reside or conduct business outside of the Territory. At the same time, it is also possible that another Craters and Freighters Franchised Business may provide services to customers who reside or conduct business within the Territory.
You may be granted, in our sole discretion, express permission to promote and advertise your Franchised Business to customers in an unsold territory adjacent to your Territory ("Adjacent Territory"). If we permit you do to so, you must agree that if the Adjacent Territory is granted to another Craters & Freighters franchisee, you will, upon receipt of written notice from us, cease all promotional and advertising efforts within the Adjacent Territory, return to us all customer data and prospect information related to the Adjacent Territory, and cease providing products and services to customers in the Adjacent Territory.
You do not have the right to use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing, to make sales outside of your Territory. If you receive information on prospective business outside of your Territory, you must relay the information to the owner of the Franchise who owns the Territory where the business is located. In areas where there are no Craters & Freighters Franchised Businesses, you may provide services to the prospective client.
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, a franchisee may solicit business within their territory to obtain customers who reside or operate within that territory. While franchisees cannot knowingly solicit business outside of their assigned territory, they are not required to verify that their customers reside or conduct business within the territory. This means that a Craters & Freighters franchisee may inadvertently provide services to customers located outside of their territory. Conversely, another Craters & Freighters franchise may also provide services to customers who reside or conduct business within a specific franchisee's territory.
Craters & Freighters may grant a franchisee express permission to promote and advertise in an unsold territory adjacent to their own, referred to as an "Adjacent Territory." However, if that Adjacent Territory is later granted to another franchisee, the original franchisee must cease all promotional and advertising efforts in that area. They must also return all customer data and prospect information related to the Adjacent Territory and stop providing products and services to customers in that Adjacent Territory.
Craters & Freighters franchisees are restricted from using other channels of distribution, such as the Internet, catalog sales, or telemarketing, to make sales outside of their territory. If a franchisee receives information on prospective business outside of their territory, they are obligated to relay that information to the franchisee who owns the territory where the business is located. However, in areas where there are no Craters & Freighters franchises, a franchisee may provide services to the prospective client. This ensures that all potential customers are served, even if they are not within an existing franchise territory.